Crypto Regulation 2019. What’s happening?
Cryptocurrency is in trouble due to the crypto regulations released today. Though these regulations are still suggestions, they will soon be implemented in over 200 countries by FATF.
The Financial Action Task Force is the main multi-government force. They develop strategies and recommendations to fight money laundering and financing of terrorism. About 200 countries follow FATF.
FATF published a note clarifying regulation recommendations. The regulation news was not taken lightly by many brokers. Since these new rules will need interpretations by regulators specific to different countries, they might be applied differently.
Earlier this month, Eric Turner, director of research at crypto researcher Messari Inc. expressed his opinion on crypto regulation news. He thinks that these regulations will have a more significant threat to the market than we think. The impact on the regulators will be the largest to this day.
Countries that will not comply with the regulations will get on the blacklist by FATF. They will permanently lose access to the global financial system, affecting the economy gravely. Over 500 crypto funds that began operating in the last couple of years will be severely affected.
New Crypto Regulations Explained
Cryptocurrencies will be subject to rules preventing money laundering, crime financing, and more. According to the recent investigations and regulation news, cryptocurrency is used for crime all over the world. Starting from sending illegal money in small and undetectable amounts, to paying for illegal activities on the dark web.
The fear of crypto is not new. Even central banks have been fearing digital assets as a potential threat. If cryptocurrency becomes the main financial asset, banks will lose their importance in the world. Especially, since the new Facebook token will likely become huge online.
New regulations will affect all countries differently. Since the regulators have the right to interpret the regulation suggestions in their own terms, the rules will differ. Thus, crypto regulations by country will not be uniform. Still, the general idea will remain the same.
All brokers and crypto handlers will be required to send information regarding crypto money transfers worth over $1,000. The point is to see if any illegal money is being transferred. Not necessarily laundered money, but also crime-born money.
Earlier this year a Spanish drugs cartel was broken up. They were caught using two cryptocurrency ATMs to launder money. The exact regulations regarding money laundering have not been released yet.
Update on Bitcoin
Bitcoin’s behavior was also affected by regulation news. In the last couple of days, as predicted, Bitcoin fell to $9,000’s and traded linear for a while. Every up came with a worse low. Previous night Bitcoin resurfaced to the $9,500’s getting to the year high at $9,700. The prices keep switching still.
The regulation news must have given investors a lot of doubt regarding crypto for now. The new FB token is not helping either. Though Bitcoin is doing well despite the external influences, it is hard to say what the future holds for the crypto-king. The crypto regulations will most likely harm the market somehow.
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